Brunel Pension Partnership, Bristol, England, committed a total of £340 million ($447 million) to two long-lease real estate strategies.
The local government pension scheme pool said Thursday it had made the first two allocations for its secured income portfolio — one of five private market portfolios developed by Brunel for its LGPS clients.
Brunel said in a new release that it had committed to the M&G Secured Property Income fund, managed by M&G Investments, and the Aberdeen Standard Long Lease Property fund, managed by Aberdeen Standard Investments. About £170 million in aggregate will be invested in each strategy on behalf of three LGPS clients that have made commitments to Brunel's secured income portfolio.
"We are very happy with the outcome of this process, which clearly shows the benefits of LPGS pooling in action," Richard Fanshawe, head of private markets at Brunel, said in the news release. "The M&G and ASI long-lease property funds were selected for their individual merits and the strength of the overall combination. Together, they offer broad immediate diversification, strong long-term performance track records and sector-leading sustainability credentials, metrics which their teams and strategies are looking to improve over time. All of the above were key factors that guided us in our decision-making process."
A spokeswoman said a search was launched in April.
Brunel invests about £30 billion on behalf of 10 councils' LGPS funds: Avon, Buckinghamshire, Cornwall, Devon, Dorset, the Environment Agency, Gloucestershire, Oxfordshire, Somerset and Wiltshire.